Let There Be No Doubt: We Can Cut Truck Emissions & Fuel Use Today

The can-do spirit of American automotive engineers has been on full display over the past few weeks, as truck manufacturers unveil innovation after innovation to boost the efficiency of heavy trucks that move companies' freight cross-country.

It is crystal clear that we possess— today— the know-how to dramatically cut fossil fuel consumption and greenhouse gas emissions from heavy trucks. Moreover, we can do this while saving consumers hundreds of dollars annually and giving trucking companies the high-quality, affordable equipment they require.

DTNA Super Truck HighSome of the recently-announced advances include:

All of these fuel-saving solutions are available today thanks to the acumen of engineers at these leading manufacturers. The first round of well-designed federal fuel efficiency and greenhouse gas standards are also driving innovations like these to the market.

Even so, the strides we are making today should only be the beginning.

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Green Freight Math: How to Calculate Emissions for a Truck Move

When setting and monitoring several of the key environmental performance metrics for freight, you’ll need to know how to calculate greenhouse gas (GHG) emissions. This may sound complicated, but it’s actually quite simple.

Fuels contain carbon, which is released into the atmosphere as carbon dioxide when burned. If you know how much fuel you’ve used, you can determine most of your current GHG emissions.

You can derive fuel volume by looking at how much freight you transport, the distance that freight travels, and the specific mode of transport used. Each mode will have its own emissions factor, since some modes are more efficient than others.

Here's a simple formula for calculating greenhouse gas emissions from a truck move:

GHG Calculation

The distance and weight and/or volume information needed to calculate greenhouse gas emissions is most likely already captured in your transportation management software. Information on mode-specific emissions factors are generated by several sources, including the U.S. Environmental Protection Agency (EPA). A list of emission factors is included on page 10 and 11 of EDF’s Green Freight Handbook. Read more

The Top Three Freight Sustainability Metrics

Do your freight transportation metrics include measures for sustainability?

With freight accounting for 16 percent of corporate greenhouse gas emissions, establishing green freight practices is becoming a greater priority for large shippers.

GF-Handbook-CoverTo learn more about how to establish freight sustainability metrics, check out Chapter 2 in EDF’s Green Freight Handbook – a practical guide to the strategies companies are using to reduce their freight operations’ impact on overall greenhouse gas emissions.

Establishing baseline metrics is the logical starting point for your green freight efforts. Freight sustainability metrics provide clarity, and keep transportation teams focused on the goal of achieving emissions reductions that are measurable, and therefore meaningful.

Your baseline will include both broad corporate freight sustainability metrics and more specific freight efficiency metrics.

At a corporate level, the three most popular metrics to gauge freight sustainability , are:

  1. Emissions per ton-mile – the average emissions associated with moving one ton of freight for one mile.
  2. Absolute freight emissions – the total greenhouse gas emissions generated by transporting freight.
  3. Total fuel consumption – the fuel used by direct freight operations and by third-partly logistics companies (3pl) and carriers in the transport of products.

Our Green Freight Handbook offers advice and formulas to determine all these numbers.

At a specific level, other freight efficiency metrics –such as average emissions per shipment, percentage of ton-miles by mode, and average miles traveled per shipment – link to specific strategies that, taken together, will ultimately drive the results you see in your corporate freight sustainability metrics.

In Emissions Reduction, Activity Doesn’t Always Equal Achievement

Real progress in freight sustainability can only be measured in numbers. That’s why starting with a baseline is so crucial. If your strategies don’t shift the numbers in a positive direction, they are clearly not the right strategies.

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To Drive Down CO2 Emissions, Focus on Freight

Did you know that, as the energy demand for passenger vehicles declines steadily over the next 25 years, the fuel demand for commercial transportation is predicted to increase 40 percent over current levels?

That’s a difference of well over 10 million oil-equivalent barrels per day.

Most of that demand will come from heavy-duty trucks, which account for 57 percent of all logistics-related greenhouse gas (GHG) emissions, and 16 percent of total corporate GHGs.

Freight-share-GHGs

As a society, our appetite for goods of all kinds—food, electronics, apparel, housewares – is growing. As the population grows, demand grows, and so does the number of trucks on the road. Read more

The Green Freight Journey: Create Momentum

The Green Freight Journey is a five-step framework for freight optimization projects. In this blog series, EDF is taking a brief look at each step of the Journey.

Once you have established a Green Freight goal and defined metrics for tracking your progress, it’s time to start putting the wheels in motion. Below are some tips for taking the next step, creating momentum, in your Green Freight Journey:

  • Choose a pilot project – Select pilot projects that can be scaled up and replicated elsewhere in the organization, if successful. See our Green Freight case studies for examples of replicable pilot projects.
  • Focus on what you control – Choose a pilot project where you have direct control over the outcome. Examples here are increasing load factors or moving to intermodal from truckload. Projects that rely on the actions of suppliers, such as alternative fuel use by your contract carrier, are more difficult to execute.
  • Track results – Be sure to capture good data and use the metrics you created in step one. The data you produce will be a powerful tool in communicating the results of your pilot to employees, customers, and key stakeholders. The data will also help you identify new opportunities.

Below is an example from our Green Freight Handbook, which can help you determine which pilot project would be most impactful for your organization.

Green Freight Diagnostic

To learn more about the Green Freight Journey, watch our recorded webinar, where we go into more detail about the Green Freight Journey framework, review real-world case examples and highlight tools EDF is making available to help companies progress on their journey.

Steps on the Green Freight Journey:

The Green Freight Journey: Take Your First Step

The Green Freight Journey is a five-step framework for freight optimization projects. In this blog series, EDF is taking a brief look at each of the steps along the Journey.

The first step, Getting Started, is about deciding where you want to go. To do this, companies:

  • Gather internal stakeholders  such as supply chain or transportation executives, sustainability officers or EHS professionals, and an executive sponsor.
  • Define their green freight objective  such as reducing climate warming emissions or cutting fossil fuel consumption.
  • Determine key metrics – by reaching each agreement on how to objectively measure progress. A metrics-driven approach helps to keep you focused on the actions that will deliver the biggest results for the best returns.

When determining your metrics, consider these examples from the EDF Green Freight Handbook:

Metrics

To learn more about the Green Freight Journey, watch our recorded webinar, where we go into more detail about the Green Freight Journey framework, review real-world case examples and highlight tools EDF is making available to help companies progress on their journey.

Steps on the Green Freight Journey:

Start Your Green Freight Journey with EDF

Many leading companies are creating business value today by cutting carbon emissions from freight moves. These companies, such as Walmart, Ikea, Unilever and Ocean Spray, are following a similar path, one we at EDF are calling the Green Freight Journey, a five-step framework for freight optimization projects.

Sign up to learn more about the Journey.

Define the path. Then take a step. Then take another.

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Companies start by taking the nebulous concept of sustainability and making it mean something specific and material to their company, for example, “we are going to use fuel more efficiently." They create specific metrics to track this objective, such as product moved per gallon of fuel consumed, or emissions per ton-mile.

Next, these companies develop pilot green freight projects to test out that objective, using the metrics they chose to evaluate the projects’ efficacy. The projects that deliver financial and environmental returns are scaled up and those that don't are redesigned or scrapped.

Leaders have a critical role to play in this process as well: they create long-term improvement goals for their company’s key metrics. This enables them to focus day-to-day on continuous improvement, and it inoculates them against the siren call of “big shiny object” projects – ones that might be good for a press release but won’t move the needle on their metrics.

By taking these steps, companies advance along their Green Freight Journey, and along the way, cut costs and emissions.

Now it’s your turn.

Every company that uses the freight system to move products to market has opportunities to reduce operating costs and greenhouse gas emissions by taking a Green Freight Journey. Join me on January 14 at 12PM ET for a webinar that will introduce you to the Green Freight Journey framework, review real-world case examples and highlight tools EDF is making available to help companies progress on their journey.

During the webinar, participants will:

  • Be introduced to the steps of a Green Freight Journey and receive tips for success on each;
  • Hear real-world examples of companies that have cut emissions and costs by optimizing freight moves;
  • Review existing tools, including a green freight benchmarking survey and the EDF Green Freight Handbook; and
  • Learn how an EDF Climate Corps fellow helped Ocean Spray Cranberries identify new green freight opportunities.

Register here today for this informative webinar.

Good News for America: Cleaner, More Efficient Trucks that Protect Our Environment and Strengthen Our Economy

jason_mathers2014 is shaping up to be a great year for truck equipment manufacturers. Sales through October are running 20% higher than their 2013 levels. It’s a banner year that continues to pick-up steam. 2015 is looking even stronger, with forecasts suggesting it will be the 3rd strongest year ever for truck sales. There are several factors driving this market. Higher fuel efficiency is top among them.

This point was brought home recently by the lead transportation analyst for investment firm Stifel, who noted that “the superior fuel efficiency of the newer engines” was a key in getting fleets to buy new trucks now.

The CEO of Daimler Trucks, the leading producer of class 8 trucks for the U.S. market, acknowledged recently that their most efficient engine and transmission combination was “already sold out for 2014” and that the “demand is beyond their expectations.”

It’s not just Daimler that is having a good year.

2014 is a banner year for truck sales; and 2014 trucks are the most efficient ever.  2014 trucks are the most efficient ever because of smart, well-design federal policy.  This is the first year of the 2014-2018 heavy truck efficiency standards that will:

  • reduce CO2 emissions by about 270million metric tons,
  • save about 530 million barrels of oil over the life of vehicles built between 2014 – 2018,
  • provide $49 billion in net program benefits.

The 2014-2018 heavy truck fuel efficiency and greenhouse gas program demonstrates that climate policy benefits businesses, our economy, and human health, while also cutting harmful climate pollution.

Or, as Martin Daum, president and CEO of Daimler Trucks North America noted, these standards “are very good examples of regulations that work well.”

In its first year of existence, the 2014-2018 fuel efficiency and greenhouse gas program is boosting sales for manufacturers, reducing operating costs for fleets, and cutting climate pollution for all of us. It is clear that well-designed federal standards can foster the innovation necessary to bring more efficient and lower emitting trucks to market.   That is very good news, because we have an opportunity to further improve and strengthen these standards – creating more economic and environmental benefits in the process.  For this, we all can be thankful.

The Benefits of Stringent Trucking Standards

by Kate Rack, marketing & communications intern

The Obama Administration is developing new fuel economy standards for trucks, and last week, Ceres and Environmental Defense Fund hosted a webinar outlining how implementing strong federal standards for medium- and heavy-duty trucks would be truly a win-win situation.

Our organizations, along with other leaders, are calling for strong standards that cut fuel consumption by 40%. A recent analysis of such standards shows that they would reduce both greenhouse gas emission levels and expenses to ship goods via freight.

EDF helps freight logistics professionals on the journey to greener freight

Why make truck efficiency a priority?

Currently in the U.S., the trucking sector is the fastest growing single source of greenhouse gas emissions. U.S. businesses spend $650 billion a year on freight trucking services, which equates to over half a billion tons of GHG emissions. It is essential that as fuel efficiency standards for cars becomes more stringent, trucks follow suit, especially since 70% of tonnage shipped within the U.S is by truck. In particular, retail and consumer products are the largest consumers of trucking in the United States. Chances are, the computer screen that you are using right now to read this blog post was brought to you on a truck!

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Join EDF and Ceres Experts for “Truck Talk”

As July 4th fades away, grills cool down and the remains of fireworks are swept away, it’s time to roll up our sleeves and get back to work. In my case, I’m preparing for a webinar Ceres’ Carol Lee Rawn and I are holding this Wednesday, sharing the findings of our recent report on how strong medium- and heavy-duty truck standards would cut freight costs and emissions.

It’s a topic we’re both passionate about – and think you should be too —  and with good reason: U.S. businesses spend $650 billion a year on freight trucking services, which account for over half a billion tons of greenhouse gas (GHG) emissions a year, the fastest growing single source of GHG emissions. Fuel is the single largest cost of owning and operating a heavy-truck, accounting for 39% of total costs.

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Our report finds that new, bold fuel-efficiency and greenhouse gas standards for heavy-duty trucks could end up reducing the cost of moving freight by 7% and owners of tractor-trailer units could save $0.21/mile, an annual savings potential in excess of $25 billion given that class 8 trucks in the US logged 120 billion miles in 2013.

The Obama Administration is in the process of developing new fuel economy and GHG standards for medium- and heavy-duty trucks, and its determination will affect both your company’s freight costs and GHG emissions.  Join us on July 9th for this webinar, where we’ll walk through the savings associated with strong standards and how you can help ensure that stringent standards are adopted.

Register now for the webinar!